Fruity inventor of rounded rectangles, Apple, is taking the unusual step of cutting iPhone prices ahead of the iPhone 5 launch.

Previously Apple did not bother with cutting iPhone prices until the next model came online, with the exception of the original iPhone in 2007, which got a $100 price cut just a few weeks after launch.

However, Apple is now telling its retail stores that they can offer $49 discounts on the iPhone 4S, but the company is not saying much and it is unclear whether the cut will extend to all stores in all markets.

The price cut is probably aimed to coincide with the back-to-school shopping season and it could boost iPhone 4S sales until the new 5-series starts shipping.

Quite a few carriers and retail outlets in the US offered similar discounts this summer, but European consumers were not as lucky, although Amazon Germany dropped the price of the 4S 16GB model to €529 earlier this week.

More here.